Marketplaces 2018: Otto

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This post about OTTO is part of Tamebay’s January 2018 Marketplaces series sponsored by Flubit. For more information about marketplaces check out the Tamebay Guide.

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Marketplace Overview

OTTO is the second biggest online retail destination in Germany and claims to be the biggest online retailer there for fashion and lifestyle products. Long established as an offline brand, now 90% of its goods are sold online and it also hosts a marketplace. OTTO sells goods itself and competes but is increasingly focused on third party sellers.

The company has 9 million active customers who are predominantly aged 25-55. 62% are reportedly married women with above average income. The Otto Group reaches 45% of all German households. For marketplace sellers, OTTO represents the biggest ecommerce opportunity in Germany after Amazon.

Seller registration and requirements

To register you’ll need a minimum of 100 product lines, a proven track record in ecommerce and an established business.

According to the UK Department for International Trade, you need to pay a one off registration fee of €10k and commissions vary from 15% to 50% depending on the category. There no other fees but the DIT says that if you apply via them then the 10k fee can be waived.

You will also require a local bank account, but several currency exchange specialists can help you with that.

Product listings and fulfilment

You’ll need to translate your listings into German to feature on the marketplace but once you’re registered to sell there are few other stringent requirements to listing. Your earnings are disbursed by the marketplace on a 60 day basis in Euros.

Also part of the OTTO group is MyHermes. And they offer warehousing and fulfilment options that can easily be integrated. But you can also fulfil your sales yourself although tracking is essential. You can upload listings via the API and XML.

They also offer various onsite promotional opportunities so you can showcase your goods with advertising and banners. Such deals are negotiated on a case by case basis.

Tamebay’s take on OTTO

If you want to get better involved in German ecommerce and make more sales then OTTO should be on your list. It’s one of the biggest European marketplaces that you’ve likely never heard of. Germany is a big and developing ecommerce economy that offers good profits and sales.

It’s important in Germany and whilst it can be expensive to get registered, the DIT can help you there. If you have established operations that mean you can ship to Germany then it’s well worth exploring and and selling via OTTO.

If you have you any experience selling on OTTO, please do share your experiences.


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